Consumers plan 50% fewer leisure and business trips in 2011, reveals survey

The combined research from Deloitte and TNS Research International finds that people intend to reduce their leisure trips to the UK by 63 per cent next year, while business trips will be slashed by 50 per cent.

The survey of 4,000 participants from the UK, Germany, Italy and Spain also revealed similar anticipated cutbacks in the other three countries.  The largest of these are expected in Germany, where consumers are planning 66 per cent fewer leisure trips and 59 per cent fewer business trips.

Expectations differ​

Presented today at the 22nd Deloitte European Hotel Investment Conference, the findings contradict the expectation of hoteliers based on industry research that has so far predicted a slight upturn in business next year. 

Just last week, data from TRI Hospitality Consulting revealed that UK hotels should expect a period of stability next year as the industry emerges from recession, with London hotels expected to perform particularly well.

In a separate Deloitte report, the group also predicted a “muted but upward path” for European hotels next year, driven by higher occupancy and higher room rates.

However, Marvin Rust, hospitality managing partner at Deloitte, cautions that their consumer survey findings are at odds with these growth expectations.

“The major concerns emerge when we compare our survey findings with the operators’ recent announcements about the future.  Their expectations of growth, increased frequency and price of stay directly conflict with those of the consumer,” he said.

“The price of stay, for example, can only be increased where there is strong demand.  Our research indicates otherwise and operators may in fact be forced to reduce their price.  The industry is maybe more bullish than perhaps it should be.”

Staying competitive​

Rust also stressed that “the customer is still definitely king”, and reminded hoteliers that loyalty only extends to a particular hotel chain as long as it relates to competitive prices. 

“The room’s facilities ranks top amongst all four countries’ consumers as the deciding factor when choosing a hotel.  And when asked to rank their future ‘wish-list’ of services and facilities, the response from consumers was unanimous, free WiFi and free bottled water were by far the preferred options.”

Commenting on the survey findings, Ufi Ibrahim, chief executive of the British Hospitality Association, said it is key for the UK hospitality industry to remain clued in about what is going on abroad as competition extends beyond our own boarders.

“World competition is getting stronger and the choice now is not only between Bath and Barcelona, but between a holiday and any other item of consumer expenditure.  We must remain cautiously optimistic about 2011,” she said.